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Property Tax Calculator

Enter the assessed value and tax rate to find the annual and monthly property tax.

How it is calculated

The annual tax is assessed value × rate ÷ 100, where the assessed value is in dollars and the rate is a percent of that value. The monthly figure is simply the annual tax divided by 12, which is the amount a lender would typically collect each month into an escrow account. The tool also echoes the rate you typed back as a percentage.

The rate field is a percentage, not a mill rate. A mill is one dollar per $1,000 of assessed value, which equals 0.1%, so a rate of 12.5 mills is entered as 1.25. Use the assessed value from your tax bill or assessor, not the market price, because the two can differ. The tool is a straight multiplication: it does not subtract exemptions or caps, nor add special assessments, and tax rules differ by state and locality.

Worked example

A home has an assessed value of $320,000 and the local rate is 1.25%. The annual tax is 320,000 × 1.25 ÷ 100 = $4,000.00. Dividing by 12 gives $333.33 per month, which is the amount you would budget or expect to see added to a mortgage payment for property tax. If the assessor raised the value to $340,000 at the same rate, the annual tax would rise to $4,250.

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Common mistakes

  • Typing a mill rate into a percentage field. 12.5 mills means 1.25%, not 12.5%, which would make the tax ten times too large.
  • Using the purchase price rather than the assessed value. The assessor's figure may be lower or higher, and in some places is only a fraction of market value.
  • Entering the rate as 0.0125. The field takes percent, so 1.25.
  • Forgetting exemptions and caps (for example for a primary residence) that reduce the real bill. The tool does not apply them.
  • Assuming the tax stays fixed. Reassessments and rate changes alter the amount, so a bill based on last year's value can be off after you buy.

Sources

About this calculator

Property tax is calculated by multiplying a home’s assessed value — a value set by the local tax assessor, which can differ significantly from market value — by the local tax rate, often expressed as a percentage or in mills (dollars per $1,000 of assessed value).

Assessed values and tax rates are set independently by each taxing jurisdiction (county, city, school district) and are typically reassessed on a multi-year cycle, so the same market price can produce very different tax bills in different areas. This calculator multiplies the assessed value by the tax rate to give the annual bill, then divides by twelve for the monthly equivalent often escrowed into a mortgage payment.

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  • Editorial team

    A sale can reset the assessed value, so run the numbers twice. A home assessed at 320,000 with a 1.25% rate pays 4,000.00 a year, or 333.33 a month, but if the assessor moves it to 340,000 the bill becomes 4,250.00, or 354.17 a month. That monthly difference is what a lender's escrow account would eventually reflect. This tool follows US-style percentage rules. In your area, what do you need to check with the local assessor before buying?

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